Sector Wrap: Industrial, Internet
Thursday, March 25, 4:25 PM ET

One of the first corporate responses to the health care bill came from Deere (NYSE:DE) and Caterpillar (NYSE:CAT) this morning. Both companies believe the newly-enacted laws will take away from their bottom line as each company will be able to take fewer deductions. Deere sees about $150 million in new expenses stemming from the health care bill this year, while Caterpillar estimates it will incur approximately $100 million in expenses.

Despite the possibility of higher expenses going forward, the iShares Industrial ETF (AMEX:IYJ) was showing strength this week, climbing about 1.3% including today's modest gains.

And making global headlines this week was internet-search giant, Google (NASDAQ:GOOG). For the past few weeks, Google has been torn over how to handle the situation in China. The company's founders had vowed to "Do no evil" while running their company, but censorship policies in China have forced the company to bend its own rules for the last few years. As means of turning a profit in China and keeping its vow, Google began redirecting visitors to its Chinese language service in Hong Kong. Analysts at Goldman expect China to retaliate against Google which should bode well for shares of Baidu (NASDAQ:BIDU). Based on a report out Tuesday, Goldman believes Baidu could capture close to 75% of the Chinese market if Google is barred from the country.

Shares of the PowerShares Internet Portfolio (NASDAQ:PNQI) were trading higher despite the negative news surrounding Google, up more than 1.4% on the week including today's gains.

For MarketNewsVideo.com, I'm Sayoko Murase.